[samuraifuria]

Hey People,
newbie here.
I recently got the news that my G80 24' allocation is available to order and accepted after waiting for over a year.
Question is: I was approved by BMW Financial with a rate of 7.79%,now I clearly know that is high,my SA told me the reason of this was because credit score is below the 700's.Based on Credit Karma (i also know thats not 100% accurate) and it shows 760 as of yesterday and credit use is below 10%.
My plan is to finance the car with my bank or a credit union once the car lands,but you guys think my dealer is marking up my finance rate?not really sure how that works,but i read some dealers do that.
Car does not have a price markup btw.

['Cane]

Honestly, it doesn’t matter until the car is ready for pickup. So what… 2-4 months from now? Worry about it when the date gets closer.

[Day Laborer]

Yes, there is an unreasonable mark up there that is beyond the allowed rate hike.
Even if credit score is between 675-699 (Standard Tier 3), the base rate for finance would be 6.29% with a maximum of 1% apr mark up (7.29% max)

640-674 would be 8.29% base, (9.29% max)
Something isn't adding up

[BzsBimmer]

Does seem high even if the interest rates are trending upwards.

Either way, shop around closer to arrival date to at least keep the dealer honest.

[kgelfen360]

Yea I would listen to Day Laborer since he is doing transactions all the time. I think probably has best assessment of what this months BMWFS rate is. I does change monthly and like he said they can mark up 1%. Are they doing more ?? Who knows that they doing???
I do agree ur car is ways away so it maybe irrelevant what they saying today.

[samuraifuria]

Yes totally waiting closer to arrival is the best .
Just dont want to give my business to a shitty dealer,I would even cxl and look around another dealer if the rate markup is really true.
Either way getting financed by my bank would stop what they did or tried to do..

[kgelfen360]

Originally Posted by samuraifuria

Yes totally waiting closer to arrival is the best .
Just dont want to give my business to a shitty dealer,I would even cxl and look around another dealer if the rate markup is really true.
Either way getting financed by my bank would stop what they did or tried to do..

Yea u can look for outside financing.
If u are in CA then u have many dealers u can try to work with. Can always drive car back home. Not big deal. Probably worth ur time if it’s like 1% interest difference

[hendersonross]

Given your credit score of 760 and low credit utilization, it seems unlikely that you'd be offered a rate as high as 7.79%. It's worth discussing this discrepancy further with your dealer and perhaps even seeking quotes from other lenders like your bank or a credit union to compare rates.
Also, understanding different types of loans and their terms can be crucial in these situations. For more insight into financial options, including the distinctions between secured and unsecured loans, check out this https://paydaysay.com/is-a-payday-lo...-or-unsecured/ guide. It might help clarify options and what to consider when looking for alternative financing.

[road rage richie]

Are you looking at a 72 vs 60 month finance? Could account for the 50 basis point bang. Also Credit Karma is not 100% accurate. They use a different model. Need to pull the actual report. FICO Auto maybe? Not sure which.

[M3PGH]

Originally Posted by samuraifuria

Yes totally waiting closer to arrival is the best .
Just dont want to give my business to a shitty dealer,I would even cxl and look around another dealer if the rate markup is really true.
Either way getting financed by my bank would stop what they did or tried to do..

unfortunately most dealers are making it standard to add 1% to finance rate and are sticking to that and refusing to accept base rate from BMWFS
they are still milking the Covid hype and they know that BMWFS rate is fairly competitive
My son just bought an M2 from a dealer that I have bought a bunch of cars from and it took some work to get them to do 1/2 a point higher as compared to a full point
people here will say , then go outside bank which is possible , the problem with that is usually BMWFS rate is fairly competitive and even with the dealer adding a point to interest rate , it is still more competitive than what most people can get from regular banks irrespective of your credit score
I know there is some exceptions like some credit unions etc , but in general even with the added point , BMWFS rate is still reasonable and dealers know that
for example this month rate from BMWFS was 5.29
agreed to 5.79 which is 1/2 a point mark up
could not find any bank lower than that